How to Reduce Merchant Interchange Fees by 50%+ with LUSD Stablecoin Payments (Easy Guide for Merchants)

Merchant fees are bleeding your business dry.

Every swipe, tap, or online checkout costs you 2.5% to 5% of the transaction. For high-volume merchants, that's tens of thousands lost annually to payment processors who control your payment rails.

LUSD stablecoin flips the script. Instead of percentage-based fees that scale with transaction size, you pay flat blockchain gas fees. We're talking $0.02 to $0.50 per transaction: regardless of whether you're processing $10 or $10,000.

Let's break down exactly how LUSD slashes your fees and puts you back in control.

The Traditional Fee Nightmare: Why You're Overpaying

Traditional payment processors charge percentage-based fees plus fixed transaction costs. Here's the typical breakdown:

Credit card processors: 2.9% + $0.30 per transaction International payments: 3.5% to 5% plus currency conversion fees Crypto processors (NOWPayments): 0.5% to 1% CoinPayments: 0.5% flat fee

These percentages don't sound devastating until you run the numbers on actual volume.

Example: $100,000 monthly revenue

• Traditional credit cards: $3,200/month in fees

• NOWPayments: $500 to $1,000/month

• CoinPayments: $500/month

That's $38,400 to $6,000 annually: pure profit handed to intermediaries.

The fundamental flaw? Percentage-based pricing penalizes success. The more you grow, the more you pay. Large transactions get hammered hardest.

How LUSD Eliminates Percentage-Based Fees

LUSD operates on blockchain gas fees instead of percentage-based processing.

Gas fees = network transaction costs. On efficient blockchains, these run $0.02 to $0.50 per transaction. The cost stays flat whether you're moving $5 or $500,000.

Here's the math for that same $100,000 monthly merchant:

Traditional processors: $3,200/month LUSD gas-only transfers: ~$500/month (1,000 transactions × $0.50 average gas)

Monthly savings: $2,700 Annual savings: $32,400

That's an 84% fee reduction. Your processing costs just became negligible.

Real Merchant Scenarios: The Savings Breakdown

Let's look at specific business scenarios to see where LUSD crushes traditional payment rails.

High-Volume E-commerce Store

Annual revenue: $6,000,000 Traditional processor fees (2.5%): $150,000 LUSD gas fees: ~$1,200 annually Savings: $148,800 (98% reduction)

International B2B Payments

Single $5,000 international wire:

• Traditional rails: $515 to $945 in combined fees

• LUSD transfer: $0.03 gas fee

• Savings per transaction: 99.99%

Subscription Business (1,000 monthly subscribers at $50/month)

Monthly revenue: $50,000 Traditional fees: $1,500 to $2,500 LUSD fees: $500 Monthly savings: $1,000 to $2,000

The pattern is clear. Higher transaction values and international payments see the most dramatic savings.

LUSD vs NOWPayments vs CoinPayments: Direct Comparison

Let's compare LUSD against the two leading crypto payment processors.

Fee Structure Comparison

NOWPayments:

• 0.5% to 1% per transaction

• Custody model (they hold your crypto)

• Settlement: 1-3 days

• Minimum fees apply

CoinPayments:

• 0.5% flat fee

• Custody or merchant-hosted wallets

• Settlement: varies by coin

• Currency conversion fees apply

LUSD via Larecoin:

• Gas-only fees ($0.02 to $0.50)

• Full self-custody

• Settlement: 2-5 minutes

• No percentage-based charges

Example: $200,000 Monthly Processing Volume

NOWPayments: $1,000 to $2,000/month CoinPayments: $1,000/month LUSD: ~$500/month

Both NOWPayments and CoinPayments still charge percentage-based fees. They're better than Visa/Mastercard, but they're not truly disrupting the fee model.

LUSD eliminates percentage fees entirely.

Beyond Fee Savings: The Full LUSD Advantage

Fee reduction is just the opening act. LUSD via Larecoin delivers features traditional processors can't touch.

NFT Receipts: Tamper-Proof Transaction Records

Every LUSD payment generates an immutable NFT receipt on-chain. Benefits:

• Permanent accounting records

• Instant auditing capability

• Fraud prevention

• Customer proof of purchase

No more reconciliation nightmares or lost receipt disputes.

True Self-Custody

With NOWPayments and CoinPayments, your funds sit in their custodial wallets until withdrawal. Counterparty risk. Delayed access. Their rules.

LUSD payments settle directly to your wallet. You control your money from second one.

No intermediary custody = no freezing, no delays, no permission needed.

Instant Settlement

Traditional payment processing: 3-5 business days Crypto processors: 1-3 days LUSD: 2-5 minutes

Cash flow is king. Instant settlement means instant access to working capital.

Push-to-Card Functionality

Need fiat? Larecoin's push-to-card feature converts LUSD to your local currency and deposits directly to your bank card.

Crypto payments with fiat off-ramps. Best of both worlds.

How to Implement LUSD Payments: Step-by-Step

Getting started with LUSD is simpler than integrating traditional payment processors.

Step 1: Set Up Your Wallet

Create a self-custody wallet that supports LUSD. Options include:

• MetaMask

• Trust Wallet

• Hardware wallets (Ledger, Trezor)

Your wallet = your payment terminal. No merchant account applications.

Step 2: Integrate Larecoin Payment Solutions

Visit Larecoin to access payment integration tools.

Larecoin provides:

• Payment buttons for websites

• API documentation for custom integrations

• Point-of-sale solutions for physical stores

• Invoice generation tools

Step 3: Display LUSD as Payment Option

Add LUSD alongside traditional payment methods. Most merchants see adoption rates of 5% to 15% initially, growing as customers discover the benefits.

Step 4: Receive Payments

When customers pay with LUSD:

1. Payment hits your wallet in 2-5 minutes

2. NFT receipt generates automatically

3. Funds are immediately available

4. Optional: Use push-to-card for fiat conversion

That's it. No hold periods. No chargebacks. No percentage fees.

Merchant Independence: The Real Revolution

This isn't just about saving money on fees. It's about freedom.

Traditional payment processors control your business:

• They can freeze accounts

• They dictate terms

• They hold your funds

• They require extensive documentation

Decentralized crypto payments shift power back to merchants.

With LUSD and self-custody:

• No one can freeze your wallet

• No approval processes

• No arbitrary holds

• No "high-risk" merchant classifications

You operate on permissionless rails. Your money. Your control. Your business.

The Optional 1.5% Social Impact Model

Larecoin offers an optional 1.5% charitable contribution model. This isn't a processing fee: it's voluntary social impact funding.

Merchants who opt in contribute 1.5% of transactions to charitable initiatives. Benefits:

• Marketing differentiation

• Customer goodwill

• Tax deductibility

• Social proof

Key difference: It's optional. Pure gas-only processing remains available with zero percentage fees.

Even with the 1.5% social contribution, you're still paying less than NOWPayments (0.5% to 1%) or traditional processors (2.5% to 5%) when you factor in the eliminated gas percentage costs.

Start Cutting Fees Today

The math doesn't lie. LUSD delivers 50% to 98% fee reductions compared to traditional payment processing.

Higher transaction volumes = bigger savings. International payments = massive savings. Subscription models = consistent monthly savings.

Getting started:

1. Visit Larecoin to explore integration options

2. Set up your self-custody wallet

3. Add LUSD as a payment method

4. Start saving thousands monthly

The future of merchant payments isn't controlled by Visa, Mastercard, or centralized crypto processors. It's decentralized, permissionless, and built on stablecoins like LUSD.

Your competitors are already adopting. The question is whether you'll lead or follow.

Cut your fees. Keep your profits. Take control.

Ready to slash processing costs? Check out our comprehensive merchant guide for deeper implementation strategies.